IMAC Holdings 1

Orthopedic clinic operator IMAC Holdings this week set the table to sell more than $15 million worth of stock to investors with plans to pay off maturing debt and grow its network of clinics.

The Brentwood-based company has agreed to sell nearly 7.8 million shares and has given investment bank Kingswood Capital Markets the option to add another 808,000 shares to the offering. If investors show appetite for that extra stock, IMAC co-founder and COO Matthew Willis also will sell 400,000 of his shares.

IMAC’s leadership team will use $9 million of the proceeds to finance acquisitions of medical clinics and test and launch retail clinics. According to company filings, IMAC is looking to open “Regeneration Centers” in existing markets to attract new patients.

The retail concept will be focused on neck and back pain treatment, soft-tissue recovery, muscle tension and spinal wellness. These centers will provide chiropractic care, nerve and muscle stimulation and percussion tool therapies.

Another $4.5 million of the expected proceeds will go to pay off maturing debt, including a $1.75 million promissory note bearing 10 percent annual interest that was originally due last March but was pushed to January 2022 as well as a $2.75 million note with 7 percent interest that is scheduled to come due in April 2022. Those loans were used to fund the costs of medical clinic acquisitions and ongoing working capital needs, according to company filings.

The planned offering comes after IMAC CEO Jeff Ervin and his team has raised multiple rounds of funding in the past year to expand clinical treatments and add locations and as shares rebound from trading below $1 for most of 2020 after going public in February 2019. On Friday morning, shares of IMAC (Ticker: IMAC) were changing hands at $2.19 apiece, down 0.9 percent on the day.

This story first ran in our partner publication the Nashville Post.

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